Royal Mail Group PLC says no change to trend of fewer letters and more parcels

Royal Mail Group PLC’s () recent trend of good parcels volumes and declining letter deliveries continued in its latest quarter, the postal group revealed today.

Parcel growth in both Royal Mail and GLS continues to be driven by B2C and e-commerce, the company said, while advertising mail is being hit by GDP and low levels of business activity.

 “As the UK starts to come out of lockdown we are not seeing any change as yet in customer behaviour.

“Our customers are wanting more parcels delivered to their homes and are sending fewer letters.”

The postal group said the trends were broadly in line with its last update in June when it announced it was cutting 2,000 managerial posts.

Royal Mail added today that talks with the CWU about pay and operational changes that had started at the end of June were progressing.

In the period 30 March to 28 June, parcel volumes rose by 38% year-on-year, said the company, which was an increase of 117mln in the number of parcels carried.

Of these, domestic parcels excluding Amazon rose by 64%.

Addressed letters, however, fell by 33% as 788mln fewer letters were delivered.

Overseas operation GLS reported a 22% increase in volumes year on year over the period.